2009: the year of the food catastrophy?

This is not a happy picture. Early warning of droughts in US, Australia, South America, Asia and the Horn of Africa are indicating a major drop of food production, which will have a direct impact on the price of food. (Full)

2008 was marked by a spectacular raise in food prices due to a combination of speculation, a push for biofuel production, and a shift of food consumption patterns in countries with a large population. World market food prices have dropped temporarily (see this example for rice market prices). Unfortunately, this drop did not have an immediate effect in the food prices on the market in developing countries, where food continues to be out of reach of the poor. And prices are raising again.

With the early indicators of droughts, we are in for a renewed hike in food prices, which potentially might dwarf the 2008 food price crisis.

More on The Road about the food crisis

Map courtesy Market Skeptics